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PUBLIC HEARING TO ADOPT A RESOLUTION ADOPTING THE FIRE DEPARTMENT PLAN CHECK FEE STUDY AND APPROVING THE FIRE DEPARTMENT PLAN CHECK FEE ADJUSTMENTS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Adopt the Fire Plan Check Fee Study Final Report dated November 2025 as prepared by Matrix Consulting Group;
2. Approve the Fire Plan Check Fee adjustments using a 2-year tiered approach to bring the fees up to the levels as identified in the study and the amended Fire Department Fee Schedule; and
3. Authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of the resolution.
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Summary
The Department’s Fire Plan Review and related fire prevention service fees were last comprehensively updated in 2008. The Stockton Fire Department (SFD) retained Matrix Consulting Group (Matrix) to conduct a comprehensive Fire Plan Check Fee Study to evaluate whether current fees equitably and proportionately recover the cost of providing fire plan review services and related fire prevention plan review activities associated with construction and fire protection systems. Matrix evaluated all direct and indirect costs associated with delivering these services and concluded that current fee-related revenue does not fully offset the total annual cost resulting in under-recovery of approximately $470,000 annually. The proposed updated fee schedule is designed to align individual service fees with the calculated cost of service delivery, using a 2-year tiered approach.
DISCUSSION
Background
Fire plan review involves the technical examination of building plans and construction documents to ensure compliance with the California Fire Code and other adopted building standards. These reviews identify potential fire and life safety hazards and verify that proposed structures incorporate appropriate fire protection systems and emergency response infrastructure designed to protect life and property.
In addition to building plan review, the Department performs plan review services related to fire protection systems, fire alarm systems, underground fire service infrastructure, and other specialized fire prevention plan review functions associated with construction and development.
On December 31, 2024, the Stockton Fire Department issued an informal Request for Proposals seeking qualified consultants to conduct a Fire Plan Check Fee Study. Following evaluation of the proposals received, SFD selected Matrix Consulting Group as the firm whose proposal was determined to be the most advantageous to the City.
Matrix Consulting Group conducted a comprehensive evaluation of the Department’s existing fee structure and the actual cost of providing fire prevention services. The study applied a full cost-of-service methodology using Fiscal Year 2025-26 budgeted salaries and benefits, productive hours, divisional overhead, and departmental support costs. Service time estimates were developed in collaboration with Fire Prevention staff and reviewed for reasonableness to ensure an accurate allocation of costs to each service.
To inform stakeholders and receive community input, Fire Department staff conducted two public outreach meetings regarding the proposed fee adjustments. Meetings were held on December 2, 2025, at the Stockton Civic Auditorium (North Hall) and on December 9, 2025, at the Seifert Community Center. Meeting notices were publicly distributed and included bilingual messaging to encourage participation. Fire Department staff and Matrix Consulting Group also held a meeting with the Industry Working Group (IWG) on April 2, 2026 to provide information about the fire plan check fee study, and to give them an opportunity to provide input regarding the proposed fee adjustments.
Present Situation
The Study (Exhibit 1 to the Resolution) determined that SFD is currently recovering approximately 64 percent of the cost of providing Fire Plan Review and related fire prevention plan review services. The total annual cost of providing these services is calculated at $1,312,914, compared to $841,174 in fee-related revenue, resulting in an annual deficit of approximately $471,740. The largest source of under-recovery, approximately $199,000 annually, occurs within the Building Plan Check category. The second largest deficit, approximately $117,000 annually, is associated with Automatic Fire Sprinkler Systems. These variances reflect fee levels that have not kept pace with the actual cost of providing these services. The Study also identified limited areas where minor over-recovery occurs; those categories were adjusted to ensure that no individual fee exceeds the calculated full cost of service.
The results of the fee study are as follows:
|
Fee Category |
Current Revenue |
Annual Cost |
Difference |
|
Building Plan Check |
236,255.00 |
435,411.00 |
(199,156.00) |
|
Land Use / Entitlement Plan Review |
37,101.00 |
85,973.00 |
(48,872.00) |
|
Infrastructure Plan Review |
8,715.00 |
20,195.00 |
(11,480.00) |
|
Automatic Fire Sprinkler System |
245,207.00 |
362,110.00 |
(116,903.00) |
|
Fire Sprinkler Appliances |
6,680.00 |
5,833.00 |
847.00 |
|
Underground Fire Service |
47,204.00 |
49,751.00 |
(2,547.00) |
|
Automatic Fire Extinguishing / Fire Suppression System |
22,274.00 |
23,468.00 |
(1,194.00) |
|
Fire Alarm Systems / Sprinkler Monitoring System / Automatic Fire / Smoke / Heat Detection System |
123,065.00 |
197,822.00 |
(74,757.00) |
|
Specialized Gas Detection Systems |
23,604.00 |
20,160.00 |
3,444.00 |
|
Emergency Responder Radio Coverage (ERRC) |
- |
1,320.00 |
(1,320.00) |
|
Additional Plan Review Services / Miscellaneous |
91,069.00 |
110,871.00 |
(19,802.00) |
|
Total |
841,174.00 |
1,312,914.00 |
(471,740.00) |
The recommendation uses a 2-year tiered approach to establish the maximum fees that may be imposed for the identified services. The City Council retains full discretion to adopt the fees at full cost recovery or at a lower level based on policy considerations. Consistent with California law, the proposed fees do not exceed the reasonable cost of providing the associated services and are supported by the cost-of-service analysis prepared by Matrix. Proposed Tier 1 reflects cost levels for the Fiscal Year 2025-2026; beginning in Fiscal Year 2026-27, the fees will be adjusted by the Consumer Price Index (CPI) as determined by the City’s Budget Office and will be incorporated through the City’s annual budget adoption process. Proposed Tier 2 of the updated plan check fees will be implemented in FY2027-28 and adjusted based on the applicable CPI through the City’s annual budget development process. Each year thereafter, the fees will be increased by the CPI as determined by the City’s annual budget development and adoption process.
FINANCIAL SUMMARY
Implementation of the updated Fire Plan Check Fees and amended Fire Department Fee Schedule is projected to generate approximately $331,622 in year one, and an additional $140,118 in year 2, for a total of $471,740 in additional annual revenue for the Fire Prevention Development Services Special Revenue Fund 220-225. There is no impact to the General Fund, or to any unrestricted funds, from this action.